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MJL Bangladesh plans future expansion with land purchase

MJL Bangladesh plans future expansion with land purchase
Photo of Azam J Chowdhury courtesy of MJL Bangladesh

MJL Bangladesh PLC, a top lubricant company in Bangladesh, is gearing up to buy the plot of Taj Jute Mills located in Narayanganj. The intent behind this acquisition is to pave the way for future expansion. The company plans to invest BDT95 crore (USD8.8 million) for the 50-bigha (12.65-hectare) land, as revealed in a stock exchange disclosure.

The company has conditionally signed a memorandum of understanding (MoU) with the seller, ensuring the transparency and legitimacy of all related property documents. The land’s strategic location is a primary reason for this acquisition, company officials noted. While the exact use of the land is yet to be determined, securing a strategic location for potential future expansion is the current focus, said Azam J Chowdhury, managing director of MJL.

This plot, situated by the River Shitalakshya, is ideal for inland water transportation of bulk goods. Chowdhury mentioned that MJL had previously acquired a similar plot from Allied Jute Mills along the same riverbank.

In addition to this acquisition, MJL Bangladesh is set to purchase a new oil tanker for USD75 million, expected to be delivered by early 2026. This tanker will transport petroleum products in bulk. Chowdhury highlighted that one-third of the tanker’s cost would be covered by the company, with the remaining amount financed through borrowing.

MJL Bangladesh has consistently reported robust revenue and profit figures. In fiscal year 2021-22, the company witnessed a 19% growth in net revenue, reaching BDT2426 crore (USD224 million). However, the net profit saw a 24% decline, settling at BDT188 crore (USD17 million).

MJL Bangladesh PLC, a collaboration between EC Securities Limited (a subsidiary of East Coast Group) and the state-owned Jamuna Oil Company, began its journey in 1998. The company’s core operations revolve around Mobil and Omera-branded lubricants and shipping. Having entered the stock market in 2011, MJL currently boasts the capacity to produce around 150,000 barrels of finished lubricants annually.